Enphase Energy Q3 Earnings Preview: Is Stock A Value Play At Current Prices?

Solar micro-inverter and battery systems company, Enphase Energy ENPH is about to report its third-quarter earnings after market close on Thursday.

Enphase Energy’s stock has been on a decline since the beginning of the year. On a year-to-date basis, the stock is down almost 62%. ENPH stock has been impacted by rival SolarEdge Technology‘s SEDG warning around stagnant European sales. Events around SEDG have a direct impact on ENPH. Together they represent a duopoly in the U.S. solar inverter market.

Enphase Energy Q3 Earnings: What Analysts Would Watch Closely

Enphase Energy bulls continue to believe ENPH stock is a high-quality value investment at current prices. The business sports robust financial ratios. The company’s revenues are projected to continue to grow at double-digit rates over the coming years. Enphase Energy appears to be well positioned to tap the gains from the push towards sustainability and clean energy.

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The company has been evolving its business model and the strength of its product is touted widely.

Earnings Estimates: Wall Street analysts expect ENPH to report $1.03 in EPS for the quarter and $566.02 million in revenue, per earnings data available on Benzinga Pro. Enphase Energy has a history of beating estimates.

Over the last eight quarters, ENPH stock has delivered six positive EPS surprises and six positive revenue surprises. However, a recent ratings downgrade by analysts at Daiwa Capital and Scotiabank, may cast some doubt over an earnings beat this time.

Analysts are currently forecasting that Enphase will register an EPS of $4.91 (representing a 6.38% annual growth) for the fiscal year ending in December 2023. Revenue estimates for fiscal year 2023 are presently expected to come in at $2.59 billion (11.28% YoY growth).

Analyst Ratings & Price Targets: Wall Street analyst ratings (based on a pool of 120 analyst firms over the last 3 years) rate the stock a Buy. Consensus price target stands at $180.58 a share, representing massive upside from current price levels.

Price Action: Enphase Energy’s shares are down almost 20% over the past month. Trading at $96.16 at the time of publication Thursday. The stock’s 52-week low is $90.60, while the 52-week high is $339.92.

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